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The fast casual restaurants market size is forecast to increase by USD 302.5 billion, at a CAGR of 15.2% between 2023 and 2028. The fast casual restaurant market is experiencing significant growth, driven by several key trends. One major factor is the increasing demand for innovation and customization in food menus, as consumers seek unique and personalized dining experiences. Another trend is the rise in popularity of chef-driven fast casual restaurant franchises, which offer higher quality food and a more upscale atmosphere than traditional quick-service restaurants. However, intense competition from established quick-service brands poses a significant challenge, requiring fast casual restaurants to differentiate themselves through unique offerings and exceptional customer service. Additionally, the market is also influenced by factors such as changing consumer preferences towards healthier and more convenient food options, and the increasing adoption of technology to streamline ordering and payment processes. Overall, the fast casual restaurant market is expected to continue growing, driven by these trends and the evolving needs and preferences of consumers.
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In the evolving landscape of dining, fast-food outlets and fast-food restaurants are increasingly integrating premium products and high-quality ingredients to cater to Generation Z and other health-conscious consumers. Wraps, ethnic-inspired dishes, and international flavors highlight a shift towards more diverse and organic food options. Many establishments are now emphasizing locally sourced produce and fresh food to enhance their culinary traditions. Food delivery services and self-service options are becoming standard, with many places offering Wi-Fi and comfortable seating areas to attract patrons. Panera Bread exemplifies this trend with its focus on fine dining and commitment to social and environmental responsibilities. While alcoholic beverages are still available, there is a growing emphasis on health consciousness within the menu. This blend of fast-food locations and high-quality offerings reflects a broader shift towards balanced and sustainable eating practices.
Demand for innovation and customization in food menus is notably driving the market growth. Modern consumers are increasingly seeking food that combines novel and bold flavors. The demand for innovative and exotic-flavored food is particularly pronounced among millennials, who are also keen on tailoring their meals to match their daily calorie requirements. This customization trend is driven by the growing importance of diet, whether for medical reasons, dietary restrictions, allergies, or weight management. Consumers value the ability to personalize their menu choices to suit their preferences. Providing precisely the flavors they desire enhances the likelihood of repeat visits to fast-casual restaurants.
Nowadays, consumers expect the flexibility to customize their meals according to their needs, regardless of the time of day. Many market players are responding by offering inventive and customizable food options to attract and retain customers. These creative menus not only capture customer attention but also allow them to incorporate nutritious ingredients of their choice. As a result, with the increasing demand for innovative and customizable food experiences, the global fast-casual restaurant market is poised for significant growth during the forecast period.
Increasing focus on digitalization of services is an emerging trend shaping the market growth. The e-commerce industry is making significant strides, driven by several factors, including the expanding tech-savvy population, increasing internet accessibility, and the growing prevalence of smartphones. The availability of diverse payment methods, such as credit and debit cards, internet banking, e-wallets, and cash-on-delivery (COD), has revolutionized consumer buying habits, shifting them from traditional brick-and-mortar stores to online shopping. E-commerce platforms not only facilitate easy product purchases, including food items, but also empower consumers to make well-informed decisions by providing access to numerous user reviews before completing a purchase.
As a result, consumers increasingly prefer online shopping over physical retail outlets. Consequently, it has become essential for fast-casual restaurant owners to promote and market their products through e-commerce websites. These prevailing trends are driving market growth throughout the forecast period.
Fluctuations in food commodities prices are a significant challenge hindering market growth. One of the significant challenges faced by a wide range of restaurants, including fast-casual establishments, is the volatility in food commodity prices. Essential ingredients like sugar, grains, meat, and dairy products, vital for food preparation, often experience price fluctuations. To maintain hygiene standards during cooking and ensure consistent food quality, fast-casual restaurants in the market are compelled to increase their spending. In an era where health-conscious consumers seek high-quality yet affordable food options, these establishments grapple with the delicate balancing act between food pricing and quality, given the erratic nature of food commodity prices. This often necessitates reducing profit margins, which has a detrimental impact on their growth prospects. Furthermore, the restaurant industry operates in a price-driven environment, obliging fast-casual market players to keep their prices competitive to attract customers, regardless of the production costs involved. This dynamic represents a significant barrier to the growth of the global fast-casual restaurant market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Fast Casual Restaurants Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Chipotle Mexican Grill Inc. - The company offers burritos, burrito bowls, quesadillas, salads, tacos, sides and drinks.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The dine-in segment is estimated to witness significant growth during the forecast period. Industry research reveals that approximately one-third of children and teenagers in the United States, Canada, and various Asian and European nations consume sandwiches, burgers, or other fast-food options on a daily basis. Moreover, around one-fifth of these individuals derive more than half of their daily dietary needs from such fast-food sources.
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The dine-in was the largest segment and was valued at USD 148.80 billion in 2018. To address the daily nutritional needs of children and teenagers, fast-casual restaurants in the United States, the United Kingdom, and Australia have incorporated a variety of healthy meal options into their menus. They are also offering 100% natural fruit-based smoothies, free from added sugars, artificial colors, and flavors, with a particular focus on catering to the preferences of children and millennials. The United States sees a staggering consumption of over 290 million to 300 million sandwiches per day, with millennials being the primary consumers, drawn to the allure of quick, fresh, and convenient meal choices. Approximately 65% of millennials opt for grab-and-go sandwiches. Moreover, a significant portion of consumers prefer buying sandwiches from eateries rather than preparing them at home, with over 50% favoring this approach. These factors contribute to the growth of this market segment during the forecast period.
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North America is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Customization is a pivotal feature sought after by many consumers in North America, particularly among millennials. Fast-casual restaurants are responding by offering a range of customizable bowl-based entrees, simplifying the process of modifying ingredients to meet individual preferences. Bowls provide an attractive presentation and cater to customers' needs at various mealtimes, be it breakfast, lunch, or dinner. A prime example is Chipotle Mexican Grill, which offers a diverse selection of food options served in bowls, allowing customers to easily customize their orders by substituting ingredients. This flexibility benefits both customers and restaurant operations. Continuous innovation and menu revamping will be instrumental in driving the industry's growth in Canada throughout the forecast period.
Also, customers are increasingly avoiding food offerings perceived as less healthy in Canada. With a growing emphasis on health and wellness, consumers are favouring the use of natural and fresh ingredients in food preparation. In response, fast-casual restaurant providers are prioritizing the inclusion of healthy, gluten-free options, as well as a variety of vegetarian and vegan dishes on their menus. These factors are expected to fuel market growth in the region during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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3. Dining out Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Japan, UK, Germany - Size and Forecast
Fast food outlets are rapidly evolving with the rise of cloud kitchens and online ordering systems, enhancing customer engagement through digital platforms and mobile apps. The food service industry is increasingly adopting automation in inventory management, utilizing digital inventory tracking and automated purchasing tools. Door-to-door delivery services and self-service kiosks cater to convenience, while scheduling software helps streamline operations. Amid economic fluctuations like an economic recession and challenges such as the coronavirus outbreak, the burger or sandwich segment, pizza or pasta segment, and chicken segment are adapting with sustainable food alternatives and clean-labelled foods. Franchised restaurants and standalone restaurants are both expanding, with franchise opportunities and culinary independence driving growth. Plant-based offerings and third-party aggregated apps reflect shifting consumer preferences and internet penetration in the takeaway segment. Customer satisfaction remains a priority, bolstered by digital reservation table managers and franchised segment innovations.
Industry Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.2% |
Market growth 2024-2028 |
USD 302.5 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.85 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 40% |
Key countries |
US, China, UK, Germany, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Chipotle Mexican Grill Inc., DICKEYS BARBECUE RESTAURANTS Inc., Erbert and Gerberts Sandwich Shop, EXKi SA, Famous Brands Ltd., Five Guys Enterprises LLC, Godfathers Pizza Inc., LYKE Kitchen, McAlisters Franchisor SPV LLC, MOD Super Fast Pizza LLC, Noodles and Co., Panda Restaurant Group Inc., PORTILLOS Inc., Potbelly Corp., Restaurant Brands International Inc., Shake Shack Inc., Smashburger Servicing LLC, The Wendys Co., Wingstop Inc., and YUM Brands Inc. |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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